What you'll take away
- Commission ranges: 3–5% standard for natural/specialty, 5–7% for conventional, retainer + commission for high-touch categories. Retainers typically $1,500–5,000/month.
- National brokers (Advantage Solutions, Acosta, CROSSMARK) work best for scale; regional and specialty brokers work best for launch and category focus.
- The first 90 days determine the fit. Set specific milestones — buyer meetings booked, retailer resets covered, promotional calendars submitted — and grade against them.
- The most common broker failure is diffuse effort, not incompetence. Concentrate the broker on 2–3 target retailers per quarter, not a broad wishlist.
- Fire cleanly. Standard 90-day notice, defined account transition, no gap in retailer relationships. A messy exit costs you shelf space.
Evidence note: Linked external claims point to the named primary source where available. Unattributed cost, margin, timing, and operating ranges are Logic Agency planning benchmarks drawn from client work, supplier quotes, and operating models. They are directional, not guaranteed market averages; validate them against current contracts, quotes, regulations, and channel requirements.
Who this is for: Founders, heads of sales, and heads of ops at CPG brands evaluating a first broker, managing an underperforming broker relationship, or planning a clean transition.
What's Inside
What a CPG broker actually does
A CPG broker is an independent sales representative that carries multiple non-competing brands into a set of retailers. They provide (1) buyer relationships and access, (2) category expertise, (3) retail field support (resets, demos, merchandising audits), (4) promotional calendar coordination, (5) administrative coverage on new-item paperwork and promotional programs.
A broker does not typically own inventory, take title, or manage logistics. They are compensated on the sales they generate (commission), the effort they commit (retainer), or both. They serve the retailer's buying process and your commercial goals — which usually align but sometimes do not.
| Broker type | Best fit | Typical structure |
|---|---|---|
| National broker (Advantage Solutions, Acosta, CROSSMARK, Mondelēz Brokerage, ChaCha) | Brands doing $10M+ national wholesale volume with multi-retailer reach | 3–5% commission, sometimes retainer on top for high-touch categories |
| Natural/specialty broker (Presence Marketing, Continental Sales, Naturally Chicago, Green Spoon Sales) | Natural/organic brands, Whole Foods and independent focus | Retainer $1,500–5,000/month + 3–5% commission |
| Regional broker (Bay Cities, Palko, Nassau Candy, Alpine Sales, hundreds of others) | Emerging brands with regional distribution focus, or larger brands filling gaps in national coverage | Retainer + commission; more flexible |
| Category specialist (KeHE Fresh, foodservice specialists, beauty specialists) | Brands in a specific channel or category with unique buying dynamics | Category-specific; typically higher commission for specialized access |
| In-house sales team | Brands with $20M+ concentrated in 2-4 accounts, or founder-led sales in early stage | Salaried FTE $80–180K + incentive |
When you actually need a broker
Brokers add value in specific situations. Below is the honest read on when it works and when it does not.
You need buyer meetings you cannot get
Category buyers at major retailers and distributors take meetings from brokers they know before they take cold outreach from brands. A specialty broker's Rolodex is real.
You need field execution you cannot staff
Retail resets, in-store demos, competitive audits, promotional support — a broker's field team can cover 500+ stores; your 2-person sales team cannot.
You are entering a new channel
Foodservice, natural, conventional grocery, specialty gift, DSD — each has a different buying rhythm. A broker specialized in the channel shortcuts a 12-24 month learning curve.
You have concentrated retailer risk
When one account is 40%+ of your wholesale, an independent broker relationship gives you continuity if your account manager changes at the retailer or your internal team turns over.
You do NOT need a broker if:
Your sales are concentrated in 1–2 retailers you have a direct relationship with, your founder is the sales function, or you are pre-launch without a category story and enough inventory to support a broker's launch effort.
The commission math
Broker fees come in three common structures. Click through to see when each one makes sense — and what the total-cost picture looks like at a real revenue level.
Commission only — pay for performance
3–5% of net wholesale revenue on shipments the broker generates or supports. No retainer. Broker earns only when you ship.
- Works when your existing wholesale base already generates enough commission to hold the broker's attention. On $5M net wholesale a 4% broker earns $200K/year — enough for real engagement.
- Below $3M in wholesale, commission-only rarely wins the broker's time. Priority goes to their larger accounts.
- Track the account list assigned to the broker; commission-only arrangements need clarity on which retailers count.
Retainer + commission — the growth-stage default
Monthly retainer ($1,500–5,000) plus reduced commission (2–4%). Broker earns predictable income for advocacy work; you get real prioritization.
- Real example: $2,500/mo retainer + 3% on $2M net wholesale = $30K + $60K = $90K/year, ~4.5% of gross. Higher than commission-only at this revenue, but the retainer is what buys attention when the broker has 20+ brands.
- Ask what the retainer includes: scheduled buyer meetings per quarter, category-review pack support, EDI/promotional-planning support, in-market visit calendar.
- A retainer without measurable deliverables is a monthly gift, not a commercial arrangement.
Hybrid or tiered — for complex channel mix
Different fee treatment for different accounts or channels. Common when brokers cover natural (higher %) and conventional (lower %), or when a house-account carve-out is negotiated.
- House-account carve-out: retailers you sourced yourself before hiring the broker (usually named in the contract). No commission on those.
- Tiered rate: 4% on new accounts the broker opens; 2% on run-rate reorders after month 12.
- Category split: 5% on natural channel where broker actively hunts; 2% on conventional where broker just processes reorders.
- This structure gets ugly at scale if the "who sourced what" record isn't maintained. Build the tracker before the deal is complex enough to require one.
Worked exampleBroker cost at $2M net wholesale — retainer + commission structure
The math below assumes $2M in net wholesale revenue supported by a broker under a common $3K/mo retainer + 4% commission structure.
The broker scorecard
Grade broker candidates on the same 8 dimensions. Use it in the RFP, in the reference check, and in the first-90-day review after signing.
Retailer relationships in your target channel
Named category buyers at 2-3 target retailers. Specific meeting history, not "we know everyone."
Category expertise in your product type
Category story fluency, competitive landscape knowledge, buyer expectations by retailer.
Existing brand roster
Non-competing but relevant brands. A broker with 40 brands in your category is overloaded; a broker with zero adjacent brands is inexperienced.
Field team footprint
Territory coverage, retail visit cadence, ability to execute demos and resets. Named team members, not headcount.
Administrative discipline
New-item paperwork, promotional calendar submission, MCB verification, deduction dispute support.
Reporting cadence
Monthly account-level reporting, weekly hot-list, quarterly business review. Format and cadence agreed up front.
Commercial structure fit
Retainer vs pure commission vs hybrid matched to your stage. Term length. Termination provisions.
Reference check depth
Two current customers, one former customer. Each willing to describe a real problem, not just positives.
Red flags in broker candidates
"We know everyone"
A serious broker names specific buyers at specific retailers, describes the last meeting, and shares an honest read on that buyer's current priorities. Vague relationships are not relationships.
Cannot name their competitive brand roster
A broker with 40 brands in your category is overloaded. A broker who is evasive about their roster is protecting concerns they should be surfacing.
No structured reporting
If the broker cannot show you the format of their monthly reporting during the pitch, you will not receive it after signing.
Long-term exclusivity with no performance escape
A broker asking for a 2-year exclusive agreement without performance milestones is asking for insurance against their own effort.
Retainer with no defined scope of work
What are you paying for, monthly? Buyer meetings? Field visits? Reset coverage? Reporting? Define it in the contract or the retainer will drift into a subscription with no output.
Reference checks that sound rehearsed
If the reference customer describes only positives, ask about the last account they lost, the last time promotional support underperformed, the last time a category review did not go as expected.
The first 90 days after signing
Set specific milestones with the broker before signing and grade against them at day 30, 60, and 90.
Day 1–14: Onboarding
Product training, brand story, category positioning, target retailer list, promotional calendar sharing, reporting format finalization.
Day 14–30: Kickoff execution
First buyer meetings booked. Broker field team assigned per territory. First reporting cycle delivered.
Day 30 review
Meetings booked vs plan. Retailer feedback captured. Any process gaps identified. Corrective actions agreed.
Day 60 review
Meetings held vs booked. New-item submissions in flight. Promotional calendar reflected in retailer POs. First shipments moving.
Day 90 review
New PO cycles secured. Reset coverage completed. Deduction disputes in flight. Continue / adjust / terminate decision made with data, not vibes.
When and how to fire a broker
Firing a broker is a business decision, not a personal one. Done poorly, you lose shelf space. Done well, the transition is invisible to the retailer.
Grounds for firing
- Missed milestones for two consecutive quarters (buyer meetings, promotional support, reset coverage)
- Retailer feedback that your broker is not showing up or is misrepresenting your brand
- Deduction disputes not filed or lost due to broker inattention
- Structurally bad economics — commission cost exceeding incremental revenue by a wide margin
- Repeated administrative failures (new-item paperwork errors, promotional calendar misses, MCB unreconciled)
- A category or channel shift where the broker is no longer the right fit
How to transition cleanly
Give the required notice
Standard broker agreements require 90 days written notice. Honor it. Skipping the notice creates disputes and often triggers residual commission on business already in the pipeline.
Define account transition
Which accounts move to a new broker, which move in-house, which pause. Document per account. Notify the incoming broker or in-house team before you notify the retailer.
Notify retailer buyers directly
A short, professional note from the founder or head of sales to each buyer. Introduce the new representation. Reassure continuity. Do not disparage the outgoing broker.
Handle residual commission
Commission on shipments already sold and pending is often owed for a defined period after termination (typically 30-90 days). Pay it. It is cheap insurance against a dispute and preserves your reputation in the broker network.
Close reporting
Final MCB reconciliation. Final deduction reconciliation. Account-level handoff to new broker or in-house team. Documentation of promotional commitments in flight.
The one thing that will burn you. Firing without notice, without paying residual commission, or without a defined transition costs you more than the commission you saved. The broker network is small and talks. Retailers notice representation changes. Do it the right way.
Sitting on a broker decision? A 30-minute call is usually enough to know whether the broker is the constraint or the process is. We won't pitch you out of one you should keep.
When Logic gets involved
Broker engagements typically start when a brand is evaluating a first broker, has an underperforming broker relationship they cannot honestly assess, or is transitioning off a broker and needs clean account handoff.
What we run inside the engagement:
- Broker landscape analysis for your channel and category
- RFP issuance to 3–5 candidates with standardized scorecard
- Reference checks with real diagnostic questions
- Commercial term negotiation (retainer, commission, term, escape provisions)
- First-90-day milestone framework and monthly grading
- Transition management for broker changes (account handoff, notice, residuals, retailer communication)
The operator's summary
- Commission ranges: 3–5% natural/specialty, 5–7% conventional, retainers $1,500–5,000/month.
- National brokers for scale, specialty brokers for category focus, regional brokers for geographic gaps.
- Score 3–5 candidates against the same 8-dimension rubric. Reference-check depth matters more than pitch quality.
- Grade the first 90 days against specific milestones. Continue, adjust, or terminate with data.
- When you fire, give the notice, define the transition, pay the residuals, notify buyers directly. The industry is small.